Page 14 - Ready Set Retire

Stephen J. Kelley

One of my favorites. But not until we were able to “unblock”
them.

This couple has a relatively healthy retirement nest egg, but it
is mostly in her name. He has a nice pension. They have been
married for 25 years, have no children, and clearly adore each
other. But you would never know it by looking at their
finances.

The home they live in is in her name. She owned it before they
got married, and she was never willing to give up ownership,
even after 25 years! I asked what would happen with the home
if she should predecease him. “Oh,” she said, “I have it in trust.
The trust states if I die he has the option of living in it until he
dies.”

“And then what happens,” I asked?

“Well, the trust sells it and evenly distributes the proceeds to
our beneficiaries.”

“You mean your beneficiaries,” I said.

“No, ours,” she said. “They’re all family.”

See what I mean? She is treating it like their house in all but
name. Keeping it in a trust in her name serves no purpose,
other than emotional. He has no say over the asset if she dies
first. What if he cannot manage by himself at that point?
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